Security Due Diligence: A (short) Guide for Technical Consultants

In the ever-advancing fields of technology, advisors and consultants have the critical responsibility of steering investors and firms through the complexities of new technology capital investment and acquisitions. A key aspect of this guidance involves evaluating how thoroughly the technology has been assessed and vetted, particularly in terms of market context and potential risks. This process is not just about scrutinizing the technology itself, but also about establishing a level of assurance regarding its viability and security. Below are the three pivotal due diligence activities that technology consultants should focus on to ensure informed and secure technology investments.

1. Comprehensive Market Analysis and Vendor Evaluation

Understanding the Technology's Market Relevance

A deep dive into the market landscape is essential to gauge the relevance and potential of the technology. This includes analyzing market trends, consumer demands, and the competitive landscape. Consultants should assess if the technology addresses a genuine market need or presents a unique solution that sets it apart from existing offerings.

Assessing Vendor’s Market Standing and Track Record

Evaluating the vendor's position in the market and their history is crucial. This step involves examining the vendor's financial health, customer feedback, and their record in managing technology deployments. Understanding the vendor's stability and reputation in the market is key to assessing the longevity and support for the technology.

2. Verification of Prior Assessment and Threat Modeling

Reviewing Existing Assessments and Security Measures

An important part of due diligence is determining if the product or service has undergone thorough assessment and security analysis. If the vendor has already completed a qualitative threat model or similar assessments, advisors should review these findings in detail. This review helps in understanding the rigor of the vendor's testing and risk management processes.

Recommending Assessment Steps if Needed

In cases where comprehensive assessments haven't been performed, advisors must be able to recommend necessary steps. This includes suggesting security audits, threat modeling, and other risk assessment strategies. The goal is to ensure that every potential risk is identified and addressed, building a strong foundation of assurance for the client.

3. Pilot Testing and Performance Evaluation

Conducting Real-World Testing

Implementing pilot tests in real-life scenarios is critical for evaluating the technology’s practical performance and integration capabilities. These tests help in identifying any operational issues and assessing the overall user experience.

Detailed Analysis of Test Outcomes

Analyzing the results from pilot testing provides valuable insights into the technology's efficiency, scalability, and reliability. This step is crucial for confirming that the technology not only meets current requirements but is also capable of adapting to future demands and challenges.

In summary…

For technology consultants and advisors, ensuring a high level of assurance in technology investments requires a strategic approach that encompasses thorough market analysis, rigorous vendor and product assessment, and comprehensive testing. By focusing on these key areas, advisors can provide their clients with the confidence that their technology choices are not only innovative but also secure, market-relevant, and future-proof.